In today’s world, where mutual confidence is eroding, each property-related contract, including a rental agreement, must be secured by a valid enforceable contract in an appropriate format.
If you’re a landlord who owns a property or a tenant who wants to rent one, you must utilize a valid rent agreement format that includes all of the essential provisions and can serve as a reference document for all parties involved. To safeguard both parties’ interests, the rental agreement should be error-free, and the document should serve as joint evidence in the event of a dispute.
A rental agreement is a legal contract that specifies the terms and conditions under which a rented property is leased out and must be fulfilled by both the landlord and the renter. Though most landlord-tenant relationships are pleasant, it is prudent to have a documented rented agreement in place just in case the relationship becomes strained or filled with grievances and misunderstandings.
DOCUMENTS REQUIRED FOR THE REGISTRATION OF RENT AGREEMENT
The following documents are required for the registration of the rent agreement:
- Original copy of ownership proof or a copy of the title to the property
- Two passport size photographs (tenant, landlord, and two witnesses)
- Aadhar card
- A government authorized ID proof (voter ID, passport, and driving license)
- If the tenant is a registered company, an authorization letter from the company validating the right to register the lease is needed.
PROCEDURE OF RENTAL AGREEMENT
The following are the guidelines for registering a rental agreement.
· Create the rental agreement: This includes terms that both the landlord and the renter may negotiate and decide what gets into the contract. A deed is written once everything has been finished.
· Printing it on stamp paper: This necessitates the purchase of stamp paper of the appropriate value and the printing of the document on it.
· Signature: Both the landlord and the renter must sign in the selected places in the contract in the presence of two witnesses who will also sign the deed.
· Registration: The contract can finally be recorded at the local sub-register office.
ADVANTAGES OF A RENTAL AGREEMENT
The benefits of a rental agreement are as follow:
1. Reduces the conflicts between the Renter and owner – It simply reduces any conflict and misunderstanding between the owner and the renter.
2. Rental agreement acts as an address proof – The rental agreement ensures your existence in the city and acts as address proof for various financial transactions
3. Vehicle registration – Under the RTO rules, a registered rental agreement is compulsory for new vehicle registration.
4. Rental agreement is needed for passport making – Tomake a passport, address proof is one of the mandatory documents. Giving a rental agreement as address proof will ease the police verification process.
5. Avoid Unnecessary Legal Issues – If you ever got into a legal problem having a rental agreement can help you.
So, whether you are a landlord, the owner of the property, or a renter, these are some of the most crucial things to know about a rental agreement. Both renting a house and placing your property on the market have legal repercussions. As a result, it is strongly advised to keep things clear from the start. It will protect both parties from any future issues or conflicts that may arise.